1. Texas Transportation Funding State Senator Robert Nichols

2. What is the problem with transportation funding?What is the problem with transportation funding? What do we need to focus on between now and November 2014?What do we need to focus on between now and November 2014? What do we need to do next session?What do we need to do next session?

3. Traditional Revenue Sources State Motor Fuel Tax Federal Motor Fuel Tax Vehicle Registration Fees

4. Texas Fleet Fuel Efficiency History and Future MPG Personal vehicles Commercial vehicles Forecast

5. The Cost of Inflation Purchasing Power Fuel Tax Receipts

6. Transportation Funding Maintenance Construction

7. Transportation Funding Maintenance Construction Rehab ( Overhaul existing system ) New capacity

8. Transportation Funding Maintenance Construction Rehab ( Overhaul existing system ) New capacity Preservation

9. $ Time Preservation

10. $ Time Preservation Traditional Funding

11. $ Time Preservation Traditional Funding New Capacity

12. Preservation New Capacity

13. Reduced Emphasis on Transportation In 1960, one third of the state budget went for transportation. Today, it is closer to nine percent. ‘149% ’6033%

14. One Time Funding Sources 2001 Texas Mobility Fund ($6.9 Billion debt)2001 Texas Mobility Fund ($6.9 Billion debt) 2003 Proposition 14 ($6 Billion debt)2003 Proposition 14 ($6 Billion debt) 2007 Proposition 12 ($5 Billion debt)2007 Proposition 12 ($5 Billion debt) 2008 NTTA Payment on SH 121 ($3.2 Billion debt)2008 NTTA Payment on SH 121 ($3.2 Billion debt) 2009 Federal Stimulus Dollars ($2.6 Billion)2009 Federal Stimulus Dollars ($2.6 Billion) Also, $1.9 Billion in outstanding pass through debtAlso, $1.9 Billion in outstanding pass through debt Grand Total of $25.6 Billion in one time funding and over $23 Billion in debtGrand Total of $25.6 Billion in one time funding and over $23 Billion in debt

15. Solutions?

16. Definitions Severance Tax- tax paid on the production value of oil and gas extracted from the ground

17. Definitions Severance Tax- tax paid on the production value of oil and gas extracted from the ground Economic Stabilization Fund (ESF)- state savings account created by the voters in 1988. Commonly referred to as the “Rainy Day Fund”, the ESF is funded with the oil and gas severance tax through an annual deposit.

24. On ballot November 2014 Immediate effect Does not take money out of the rainy day fund. Does not solve the entire transportation funding problem but is a big step in the right direction.

25. Sales Tax and Registration by biennium Revenue (in billions) Vehicle Sales Tax Registration Fees

26. QUESTIONS?

27. Texas Transportation Funding State Senator Robert Nichols